IFL Finance Transitions To NBFC Model, Expands Lending Scope Under India Finsec

India Finsec Ltd has announced the successful conversion of its subsidiary, IFL Finance Ltd, from a housing finance company to a non-banking financial company (NBFC), marking a strategic shift in its operational framework. The move is expected to broaden IFL’s lending portfolio and enhance its reach across underserved segments.

 

Key Highlights From The Conversion

 

- IFL Finance, formerly IFL Housing Finance Ltd, received its NBFC registration after surrendering its housing finance license to the National Housing Bank

- The transition enables IFL to offer a wider range of credit products, including gold loans, unsecured personal loans, and loans against property

- The company will now operate under RBI’s NBFC guidelines, allowing greater flexibility in asset structuring and borrower targeting

 

Strategic Rationale And Market Positioning

 

- The shift aligns with India Finsec’s goal to deepen financial inclusion by serving low-income, self-employed, and informal sector borrowers

- IFL Finance has already built a strong presence in gold-backed lending, with high loan-to-value ratios and minimal documentation

- The NBFC model supports faster loan disbursal and customized credit solutions, positioning IFL as a nimble player in the retail lending space

 

Outlook

 

With the conversion complete, IFL Finance is poised to scale its operations and diversify its revenue streams. The move reflects India Finsec’s broader strategy to unlock value through regulatory agility and customer-centric innovation.

 

Sources: Moneycontrol, IFL Finance Filings, India Finsec Announcements, IFL Annual Report, MarketScreener.